Thursday, May 31, 2007

"Preparations for the collapse have been going on for years and the “cover story” is now being put out where the public, which is basically totally devoid of any real knowledge of fractional reserve banking other than a “primitive” understanding of compound interest and buy low sell high investment strategies… will buy it when they pull the pin…

The vast majority think that mismanagement, natural disasters, or War is the cause of all human suffering, to a certain extent that is true, but the greatest destroyer and enslaver of the human race is compound interest… no matter how big or small compound interest is, it can never be paid back…

Eventually compound interest will destroy the value of everything, except items with intrinsic value like Water, Food, and GOLD which can be bartered or exchanged all by themselves…

The economy is finished, only by resetting the debt with bankruptcy and collapse can the economy recover monetarily. Then the physical distribution system will be able to be structured to grow (inflate) debt again, but since the Fractional reserve system is the basis ”doomsday” will happen again 10, 20, 70, 100 years later when compound interest once again destroys the value of everything again and repeats the process again and again like it has been for 1000’s of years…

The Finger being pointed at the “real” problem which is the structure of fractional reserve system is not an option. The way that is used is to blame the powerless victims left holding the bag… or orchestrate smoke screen “events” to cover up and redirect the blame… It took 30 years for the blame for the Great Depression to be pinned on the FED and to this day very few people even know this fact or care…"

Law-enforcement officials were told that terrorists were building a bomb that was eventually used to blow up the World Trade Center, and they planned to thwart the plotters by secretly substituting harmless powder for the explosives, an informer said after the blast.

The informer was to have helped the plotters build the bomb and supply the fake powder, but the plan was called off by an F.B.I. supervisor who had other ideas about how the informer, Emad Salem, should be used, the informer said.

The account, which is given in the transcript of hundreds of hours of tape recordings that Mr. Salem secretly made of his talks with law-enforcement agents, portrays the authorities as being in a far better position than previously known to foil the February 26th bombing of New York City's tallest towers.

The explosion left six people dead, more than a thousand people injured, and damages in excess of half-a-billion dollars. Four men are now on trial in Manhattan Federal Court in that attack.

Mr. Salem, a 43-year-old former Egyptian Army officer, was used by the government to penetrate a circle of Muslim extremists who are now charged in two bombing cases: the World Trade Center attack, and a foiled plot to destroy the United Nations, the Hudson River tunnels, and other New York City landmarks. He is the crucial witness in the second bombing case, but his work for the Government was erratic, and for months before the World Trade Center blast, he was feuding with th F.B.I.

Supervisor `Messed It Up'

After the bombing, he resumed his undercover work. In an undated transcript of a conversation from that period, Mr. Salem recounts a talk he had had earlier with an agent about an unnamed F.B.I. supervisor who, he said, "came and messed it up.""He requested to meet me in the hotel," Mr. Salem says of the supervisor.

"He requested to make me to testify, and if he didn't push for that, we'll be going building the bomb with a phony powder, and grabbing the people who was involved in it. But since you, we didn't do that."

The transcript quotes Mr. Salem as saying that he wanted to complain to F.B.I. Headquarters in Washington about the Bureau's failure to stop the bombing, but was dissuaded by an agent identified as John Anticev.

Mr. Salem said Mr. Anticev had told him, "He said, I don't think that the New York people would like the things out of the New York Office to go to Washington, D.C."

Another agent, identified as Nancy Floyd, does not dispute Mr. Salem's account, but rather, appears to agree with it, saying of the `New York people' "Well, of course not, because they don't want to get their butts chewed."

Tuesday, May 29, 2007

The following was written in 2003. It's a shame so many chose not to listen:

"A lesson in deflationary economics…

Stage 1You buy a Condo as rental property for $200,000 with 10% down at 5% Interest for 20 years. $180,000 is what you owe and your payments are $1187.92/month condo fees are $100/month and Property taxes are $100/month = 1387.92/month to “own it” and you rent it out for $1500. Let’s say real estate takes a 5% hit. At first this is how it looks: Your condo is worth 190,000 but to sell it the fees are 7% Let’s say so… It is worth only $176,700… you just lost $23,300 and you owe $177,344.96 after 6 months.

Stage 2The renter moves out… and you eat a month payment for $1387.92 and have to drop the rent by $100 to attract another renter. Loss so far is $24,487.92

Stage 3Property taxes are not bringing in enough and are raised by $25 a month. New payment to “own it” is $1412.92 renter is paying $1400…House prices drop another 5%... The condo is worth $180,500 but to sell it the fees are 7% let’s say so…It is worth only $167,865… you just lost $33,625.44 and you owe $174,622.86 after 12 months…

Stage 4The owners of the rental properties that were bought 5 years previously drop their rents to $1200/month and your renter moves out again and you take 2 months to “figure it out”. Loss now = $36,401.28 + 187.92/month every month after that…It will cost you $4,622.86 just to escape if you could sell it in 24 hours for $170,000… Then factor in “small print penalties” and your total loss could be $40,000.

(It doesn't matter what figures you put in - down is down - higher figures and the problem is worse…)

Because you were living on credit you have to declare bankruptcy as this investment was enough to finish you…

When residential real estate “Cracks” it will be a blood bath… The person that originally sold it to you for $200,000 comes in at the bottom and buys it back for $120,000 and since he had the $186,000 in silver and it went to $10 an ounce from $5 now he owns a condo that generates $900 a month and has $252,000 in the bank and you are living in it...Imagine the millions soon to be caught in the American dream scheme…

How many millions of people have bought substandard or second hand money pits with only 0%,5%,10% down? Quite a few... Once the cold grim realities of being a landlord or homeowner/buyer set in, in an environment of dropping prices then we'll see what happens...

The process is somewhat slow but it will crack straight across the board within 24 months [Cheryl-Lynné: the real estate market topped in July 2005] or wages straight across the board will rise up to meet the cost of rent or mortgages that have to keep increasing forever...Unemployment needs to be reversed drastically also... Debt deflation will work its magic...

The home builders, real estate agents, and lenders don't care about providing families with houses… they just need suckers to sign the dotted line and take long-term responsibility for the short-term debt (construction loan)... The profits are just invested in more speculation and marketing to get the next round of suckers...The bottom of the barrel is getting scraped and soon the dotted line signing ceremony is going to start to disappear unless prices drop, interest rates drop, unemployment is stopped or wages rise drastically."

HT was generous with his figures, the negative cash flow and price depreciation most real estate investors are suffering is much worse. One of the many hazards of failing in the due diligence department. One example - someone I know bought a Florida investment condo conversion in 2006 for $156k which one year later appraises at $110k; at the $110k purchase price the negative cash flow is still $500 per month. Mmm...investments are supposed to make money.

Monday, May 28, 2007

The Government needs $1,000,000,000 to function so the Treasury creates prints a BOND worth 1,000,000,000 at 5% for 30 years and gives it to the FEDERAL RESERVE which sends a FEDERAL RESERVE CHECK for $1,000,000,000 that is deposited into the Treasury then checks are issued for government expenses construction, acquisitions, and payroll. The 5% is owed to the private banks which are the share holders of the FEDERAL RESERVE. The controlling Share holder of the main Central Bank of the United States of America (The FEDERAL RESERVE Bank of New York) is the Bank of England. After 30 years the Government has to come up with $2,628,894,627.00 to pay the BOND or $1,628,894,627 to pay the “Compound Interest” and Issue another BOND for $1,000,000,000 at 5% for 30 Years or what it usually does issue a bond worth 1,700,000,000 at 5% for 30 Years…

As you can see because the Compound Interest is not created out of “thin air” there is no way to ever pay it other than creating more money/ debt out of “thin air”. Eventually the compound Interest payments = Tax revenue which leads to tax increases at some point the Tax increases take so much out of the ECONOMY that it ceases to function and collapses…Not a conspiracy theory, just mathematics is all, it's the way things work.

Eliminate compound interest charged on money/debt created out of “thin air” and this problem will not ever occur. A child could most likely see the logic and a “chimp” with enough training could too… But people that contribute nothing to society and would like to just sit back and live off of the hard work of others like this system and their feelings get hurt when they are revealed to be nothing more than vampires slowly and methodically sucking the life force from civilization. The Central Bankers make the “Decisions” which the federal government pursues, not the other way around, that is how tyranny works… Taxation without representation or slavery…

Fractional reserve banking is not “Modern or Liberal” it is a fraud and a crime against humanity… it is slavery plain and simple. If fractional reserve banking is not resisted or changed namely, the charging of compound interest on money/debt created out of nothing...

War/conquest/looting and death is all that can be used as a cure for debt deflation... That is what the WAR on Terror is about...

Compound Interest = debt inflation = debt deflation = Economic suicide... Every time for 1000's of years... Eliminate Compound interest on money/debt created out of thin air and only charge Interest (or rent) on 100% reserves (Savings) with proper regulation of Interest rates...

That is a step in the right direction to free the human race from the slavery of the dark masters known as your friendly "Central Bankers". Until that day arrives when we have the "chance" or "choice" we have to make the right "decision". The Powers that be will stop at nothing to continue their Unconstitutional criminal theft operation...

What to do? That is up to you... What do you think I can do alone...? Just remember the cause of all our economic problems is fractional reserve banking, if the Institutions say otherwise they are lying... Plain and Simple. It took 30 years for the cause of the great depression to be pinned on the Federal Reserve/Fractional reserve bank... This depression is no different except we have nuclear bombs to speed the "cure" up so it might take more than 30 years to pin the blame where it belongs not on the victims but on the culprits...

Everything you see today is a symptom of the destructive effects the compound Interest has on a money supply of a nation...If you don’t eliminate the compound interest attached to DEBT/MONEY it doesn’t matter if GOD administers the fractional reserve system and it is only used for the complete and total 100% ethical benefit of mankind… Once the ability to create new debt/money to pay the compound interest due on the previous debt/money stops or becomes insufficient… Debt deflation is the result that leads to bankruptcy of the banks and collapse of the economic system Period…End of story… If you don’t believe that, too bad I gave it the old college try… because that is the unfortunate truth… that’s the reality of fractional reserve banking for the past 500 years… If you want to post any more fairy tales about mismanagement, malinvestment or greed being the cause of debt deflation leading to bankruptcy and collapse of the economic system go ahead. But the fact is...

“Compound Interest” charged on or attached to money/debt created out of "thin air" is the “root” cause of debt/money deflation.

Read the thread over and over again or get out a piece of paper and figure the math out for yourself, I knew about the mechanics of fractional reserve banking 11 years ago but it wasn’t until 98 that I actually “comprehended” it. It was hard to break free from the Inflationary just think positive fractional reserve banking religion…real hard… It is Impossible for me to be fooled or corrupted now…Not everyone is cut out for such a radical shift especially when the residual radiation from the dying just think positive religion is still so strong… so here is how you start.

Reduce all debt levels as quickly as possible… Figure out what the “bare bones” basic cost for you to exist on planet earth is for 3 months. Then if you can handle it, double that figure and put it in the bank or a shoe box…When the “crunch” happens most economic activity will stop… If there are bank runs the money could get caught but you should see signs before Joe Six Pack and have plenty of time to get your hands on the money.

Now if you have enough resources left buy 500 to 1000 oz of silver or equivalent amount of Gold, 25% coins and the rest bars… and you want .999… If they ask for ID go some place else…If you do all that you have accomplished more and are better prepared than 99% of the population of the US… All you have to do is wait for the shit to hit the fan while living a normal life… no radical guns in the cabin routine… then play it by ear from that point…

If you have a house it is up to you to figure out how to play that… buy low sell high… Equity will take a big hit…"

"Break on through to the other side… Or Fractional Reserve Thinking...

It does not matter if you are a Liberal, Conservative, Totalitarian dictator, Communist, Socialist, or whatever philosophy you try over time to refine to it’s ultimate expression, it will fail. If you pin your hopes and dreams on Fractional Reserve Banking which is the charging of Compound Interest on debt/money created out of nothing not only will your hopes and dreams for the future be impossible to realize but the civilization that you build around that principle will collapse into dust… Every civilization that has ever existed in recorded history has collapsed once Fractional Reserve Banking was made the basis of it. It is not something new it is something 100’s and even 1000’s of years old…

Civilization based on fractional reserve banking can not survive without creating new debt/money out of thin air that is equal to or more than the Compound Interest of the previous debt/money that was created out of thin air to pay the Compound Interest of the previous money/debt that was created out of thin air to pay the Compound Interest of the previous money/debt that was created out of thin air to pay the Compound Interest of the previous money/debt that was created out of thin air to pay the Compound Interest of the previous money/debt or this process will begin to work in reverse causing the money/debt to shrink, Debt Deflation or liquidation and collapse of the civilization which it is the “monetary” base of…

The unfortunate "truth" of charging/attaching Compound Interest to debt money created out of thin air…This is forbidden knowledge, I don’t know of any educational institution in the world that teaches this… Do you?

Money/Debt is power…

You are hungry, as long as you can pay the compound interest you will be fed…You are wet, as long as you can pay the compound interest you will be housed…You are cold, as long as you can pay the compound interest you will be warm…You want to contribute your “fair share”, as long as you can pay the compound interest you will be a “respected member of society”…You are sick, as long as you can pay the compound interest you will be medicated…You are a Central Banker and as long as the compound interest is paid your power will grow exponentially.

BUT

If you can’t, resist, are not allowed to, or won’t pay compound interest…

You will Starve. You will be Homeless. You will Freeze. You will be an Outcast. You will Die.

If you are a Central Banker your power will be absolute, and you won’t care because you and you alone have the power to create unlimited power or money/debt with compound Interest attached to it.

How do you pay Compound Interest? You borrow it… From where? Central Banks… How does that work? Money is printed with compound Interest attached that is owed to the Central Banker. But how do you pay that Compound Interest? You borrow it… From where? Central Banks… How does that work? Money is printed with compound Interest attached that is owed to the Central Banker. But how do you pay that Compound Interest? You borrow it… From where? Central Banks… How does that work? Money is printed with compound Interest attached that is owed to the Central Banker. But how do you pay that Compound Interest? You borrow it… From where? Central Banks… How does that work? Money is printed with compound Interest attached that is owed to the Central Banker. But how do you pay that Compound Interest? You borrow it… From where? Central Banks… How does that work? Money is printed with compound Interest attached that is owed to the Central Banker. But how do you pay that Compound Interest? You borrow it… From where? Central Banks… How does that work? Money is printed with compound Interest attached that is owed to the Central Banker. But how do you pay that Compound Interest? You borrow it… From where? Central Banks… How does that work? Money is printed with compound Interest attached that is owed to the Central Banker. But how do you pay that Compound Interest? You borrow it… From where? Central Banks… How does that work? Money is printed with compound Interest attached that is owed to the Central Banker. But how do you pay that Compound Interest?

But what if you can’t, resist, are not allowed to, or won’t pay compound interest…?

You will Starve. You will be Homeless. You will Freeze. You will Die. You will be an Outcast.

Checkmate you are doomed…Especially if you don’t know what is happening to you. What happens to the Central Banker? Nothing…

Once a Civilization reaches the maximum potential of Debt inflation, (which means that the ability of the Civilization that is based on Fractional Reserve Banking or the creation of money/debt out of thin air with compound interest attached to pay the compound interest of the previous money/debt created out of thin air with compound Interest attached), it is unable to create any more debt/money to pay compound interest, “Maxout” is reached which causes the process of Debt inflation, described above and numerous other places by me, to work in reverse or Debt Deflation.

Debt Deflation is when money/debt created out of thin air with compound interest attached is less than the compound interest payment due on the compound interest of the previous money/debt created out of thin air with compound Interest attached which causes the “monetary base” or “money supply” of the Civilization to Deflate until it stops or is stopped…

How do you stop it?

Answer: Debt inflation is the only way to stop it…

But if you reach maxout and can’t borrow enough money/debt to pay “compound interest” which is the “price” to sustain Debt inflation how do you inflate the Debt?

Answer: You don’t, Einstein!

It does not matter if you are a Liberal, Conservative, Totalitarian dictator, Communist, Socialist, Marxist or whatever philosophy you try over time to refine to its ultimate expression, it will fail. If you pin your hopes and dreams on Fractional Reserve Banking to make your dreams come true…

If you are a Central Banker your power will be absolute, and you won’t care because you and you alone have the power to create unlimited power or money/debt with compound Interest attached it.

You think I’m finished? The continuation of this story gets even better and much more diabolical… We will explore various situations that are thought to be "Causes" but are in fact "Symptoms" of Compound Interest attached to money/debt created out of thin air..."

Saturday, May 26, 2007

You buy a Condo as rental property for $200,000 with 10% down at 5% Interest for 20 years

$180,000 is what you owe and your payments are $1187.92/month condo fees are $100/month and Property taxes are $100/month = 1387.92/month to “own it” and you rent it out for $1500

Let’s say real estate takes a 5% hit. At first this is how it looks:

Your condo is worth 190,000 but to sell it the fees are 7% Let’s say so…

It is worth only $176,700… you just lost $23,300 and you owe $177,344.96 after 6 months.

Stage 2

The renter moves out… and you eat a month payment for $1387.92 and have to drop the rent by $100 to attract another renter. Loss so far is $24,487.92

Stage 3

Property taxes are not bringing in enough and are raised by $25 a month. New payment to “own it” is $1412.92 renter is paying $1400…

House prices drop another 5%... The condo is worth $180,500 but to sell it the fees are 7% let’s say so…

It is worth only $167,865… you just lost $33,625.44 and you owe $174,622.86 after 12 months…

Stage 4

The owners of the rental properties that were bought 5 years previously drop their rents to $1200/month and your renter moves out again and you take 2 months to “figure it out”.

Loss now = $36,401.28 + 187.92/month every month after that…

It will cost you $4,622.86 just to escape if you could sell it in 24 hours for $170,000… Then factor in “small print penalties” and your total loss could be $40,000.

Because you were living on credit you have to declare bankruptcy as this investment was enough to finish you…

When residential real estate “Cracks” it will be a blood bath… The person that originally sold it to you for $200,000 comes in at the bottom and buys it back for $120,000 and since he had the $186,000 in silver and it went to $10 an ounce from $5 now he owns a condo that generates $900 a month and has $252,000 in the bank and you are living in it. Ha ha ha ha ha ha ha ha ha…

Imagine the millions of morons soon to be caught in the American dream scheme…"

"The structure of the Federal Reserve System will allow a “war machine” to run forever as long as it doesn't run out of “willing” men and material... Or a military dictatorship...

Modern Fractional reserve banking's main selling feature is that it needs no gold to function... Kings and Queens would have to end wars once they ran out of gold.

The bankers solved that by promising to supply the necessary "money" to prolong wars if the King, Queen, or ruler would make the money they create out of thin air “lawful.” But inflation always would collapse the system when the war ended or the people caught up in it grew tired trying to keep up… On top of the fact that the bankers would supply the same deal, money and banking system to the opponents…

The Cold war was “fought” this way… The war on terrorism is fought this way also. Unfortunately in fact most of the wars of the past 400 or so years have been fought this way… (The Battle of independence was fought and won by the founding fathers and they created the most feared document the central bankers/ powers that be could have imagined in their worst nightmare, the Constitution of the Republic of the United States of America. The war of independence was lost in 1913 when the British controlled Federal Reserve was created.) When the economy collapses there will be a lot of soldiers that can be created out of thin air… It’s diabolical and they don’t teach it in the Fractionally reserve “funded” Public Schools or Fractionally reserve “funded” Universities.

The Fractionally reserve “funded” Government likes it… and the Fractionally reserve “funded” Human race is addicted to it and enslaved by it.

“The powers that be” own it… The bank of England controls the Federal Reserve Bank of New York which controls the others in the system…

“Sir” Alan Greenspan…Hint hint. That is why the British and Americans are allies vs. Iraq.

GW Bush and Saddam are victims of the system… Just like you and I…

Glad I’m not Saddam or Bush…

Who owns the Bank of England? And what connection to Switzerland does it have? And why is France hoarding their Gold supply… Will I live to see the next Star Wars movie?

Tune in next time for Episode II “Why am I getting so many computer viruses lately.”

Friday, May 18, 2007

"We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied soon."-- Robert H. Hemphill, Credit Manager of the Federal Reserve Bank, Atlanta, GA

"The System you are dependent upon to provide your existence is called the "Floating exchange rate debt backed by debt fractional reserve banking system" I´ve studied it for 10 years and it is in the terminal phase of collapse which will produce a hyperdeflationary implosion of debt... The main event will be as worse or worse than the depression in the US in the 1780´s on a global basis...The US economic system which has been hopelessly dependant on debt inflation to be created in great enough quantities to overpower debt deflationary forces for 45 years is fast approaching the system´s theoretical maximum potential to produce debt inflation...

Money is debt. Currently in the US debt is being created faster than the world can realisticly absorb it causing a debt glut which is the reason why US debt dollars are losing their value in relation to everything else... Once the US reaches it´s maximum potential to use previously created debt to leverage new debt into creation in greater quantities the 45 year debt inflationary ponzi scheme collapses into a hyperdeflationary implosion of debt...

"This process of "debt deflation" (a term coined by the early twentieth-century American economist Irving Fisher) was important in the U.S. deflation and depression of the 1930s"-Remarks by Governor Ben S. Bernanke Before the Economics Roundtable, University of California, San Diego, La Jolla, California July 23, 2003

Not important...The "Paramount cause" Note: The Great Depression in the US in the 30´s was the result of the hyperdeflationary implosion of 16 years of debt inflation... This time it is 45+ Other than some sort of external (Asteroid impact) or natural (Supervolcanic eruption) A hyperdeflationary implosion of a debt backed my debt system is the greatst manmade destructive event behind Global nuclear war... It is the purest of pure economic terror which is currently beyond 99.99999% of the general population to even begin to comprehend...

Here is the Basic mechanics of a debt backed by debt fractional reserve banking system...

1.the inflation of debt and the destruction of savings 1958-2004-05 The US officially announced to the world we were in this system in 1971 with the closing of the GOLD window... Once the system reaches it´s maximum potential to inflate debt which will happen this year or next then...

2. Deflation of debt and the destruction of equity...late 2004 to early 2006... The deflation of debt will be unstoppable do to the fact the Federal Reserve does not have the ability to lower rates below zero... an unstoppable hyperdeflationary implosion of debt will result leading to...

3.Bankruptcy of the banks, Collapse of the economy, and consolidation of power...

Great depression will begin some time in 2006... Wipe the hope from your minds...reguardless of what happens there is nothing that can be done to prevent this from happening...the only way to prevent debt deflation is by producing a greater amount of debt inflation...Later this year or in 2005 the "Floating exchange rate debt backed by debt fractional reserve banking system´s" ability to produce a greater amount of debt inflation to overpower debt deflation will become a mathematical impossibility...and a hyperdeflationary implosion of debt which has been postponed for 45 years will flood out, overwhelm the system and be totally unstoppable... GOLD and Silver if not banned or confiscated should be one of the last commodities to deflate...

Don´t believe me? Big deal Just watch it unfold there is no escape unfortunately... This is just a pathetic public service announcement directed at people who want to give a shit...You believe or you don´t...Non belief will not change destiny...We have been marching towards economic doomsday for 45 years and there is no turning back... Inflate debt or die..

Everything you know about economics is a lie... Money is debt there is no such thing as money anymore...It is a figment of your imagination... Consumers use their current income which is composed mostly of previously created out of thin air debt with compound interest attached by a commercial bank at the request of consumers to service the creation of newly created out of thin air debt with compound interest attached (Which is what future consumer income is mostly composed of) by commercial banks at the request of the consumer or consumers...

In simple terms current consumer income is previously created out of thin air debt with compound interest and future consumer income is newly created out of thin air debt with compound interest attached... Business is the same...operating expenses are mostly previously created out of thin air debt with compound interest attached and profits are mostly newly created debt with compound interest attached... A debt backed by debt fractional reserve system is supported by the perpetual inflation of new debt in greater amounts than previously created debt... It is based on the leveraging of leverage... A debt inflationary ponzi scheme...The entire US population rents their money supply from the commercial banks and ultimately the Federal Reserve... Since Debt is money the total debt supply of the US currently stands at 35 Trillion...

In order to prevent a debt deflationary contraction of the debt money supply debt inflation must be sustained in the required amounts to overpower the ever present debt deflationary forces... This has been accomplished for the past 21 years by the methodical lowering of interest rates from 19% to 1%...Zero or as low as you can go is it...then it will be impossible to support the creation of the required amount of debt inflation to overpower debt deflation and the debt money supply will rapidly begin to vaporize...or the debt inflationary machine begins to work in reverse... Equity such as real estate which is just a debt inflated asset will vaporise also...

The reason why the US dollar is collapsing is because in order for the US to maintain it´s economy which is based on the perpetual inflation of debt ponzi scheme since 1958, Debt is being created at a level which is so great that the world can not support it...You could think of debt as food...Food is being created faster than it can be consumed... The number 1 Export of the US is consumer debt...

"We are completely dependant on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money (at the request of the consumer) we are prosperous; if not, we starve. We are absolutely without a permanent money system.... It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon." --Robert H. Hemphill, Atlanta Federal Reserve Bank

I knew how the system worked 10 years ago...It took 8 years until I actually comprehended it... Everything I have posted to this point is the 100% truth...You don´t have to believe it... The difference between what others have said and what I´m saying now is that they don´t understand/comprehend Basic mechanics of the system...

Stages of Debt backed by Debt fractional reserve banking...

1 Inflation of debt and the destruction of savings. Once the maximum potential debt inflation is reached then...

2 Deflation of debt and the destruction of equity. If debt inflation can not be restarted then a hyperdeflationary implosion of debt is the result which leads to...

3 Bankruptcy of the banks, Collapse of the economy and the consolidation of power.

The above is not taught in fractional reserved funded schools or other educational institutions... I´m not trying to sell anything...You either comprehend it or you don´t...It took me 8 years... This is just info I put here...I have my hands full on other boards putting scoffing idiots in their place... I know more than bankers and economists... They are clueless...just pigs at the trough...

Those who have studied the actual functions of the system for years...know what we are talking about... There are two ways to look at it... Responsible altruistic logic or Absolute self indulgent reason... Logic vs Reason Truth vs. Lies I happen to know the difference between the two... Logic other than my poor articulation of the facts dictates that I´m right... Reason dictates that I´m just another loonytoon doom and gloomer... I can go quite deep and I assure you that you will recoil in pure terror if you even for a second comprehend the true gravity of the situation... At this stage doubters and scoffers are in contempt of the truth (denial)... Proof? Evidence? Soon you will have more proof and evidence than you can comprehend or deal with... Laugh and scoff all you want...It is ultimately insignificant to what is presently unfolding...due to 45 years of laughing and scoffing... This is no planet X or supervolcano countdown...This is cold cruel reality about to show up...Like it has 100´s of time in the past when this same exact system has been used to support civilization...a classic textbook example of the responsible creation absolute destruction cycle is Rome, It has a 100% failure rate...It has never worked and the basic mechanics have not changed in 1000´s of years...All this system can do is inflate debt to it´s maximum theoretical potential then collapse...That is all it is designed to do...and that is what it is going to do...

Now we are making progress... In Germany the people at the top converted Marks into gold as fast as they got them and when the printing presses which were supporting the debt inflationary ponzi were shut off the bottom imploded, the middle class especially, and the top bought the bottom up for well below fire sale prices...

"A few who can understand the system (check money and credits) will either be so interested in it´s profits, or so dependent on it´s favors, that there will be no opposition from that class (THE TOP, Maybe YOU.), while on the other hand, the great body of the people (THE BOTTOM, Most likely YOU.) mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear it´s burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests." - Rothschild Brothers of London

In all economic systems the top sucks from the bottom...currently this is how the ponzi works... The "top" requests a commercial bank to create debt out of thin air short term at wholesale prices... Lets say $150,000 for a year at near prime 2.5% The top then converts it into an asset or sells it outright after it has been marked up... Lets say a House is constructed for $120,000 then marked up to $200,000 and a for sale sign put in front...

Now a member of the bottom sees the house, falls in love, and wants to buy it...So then the bottom requests a commercial bank to create debt out of thin air long term at retail prices...Lets say $180,000 for 30 years at 6%

The end result... Bottom is making payments on a debt created out of nothing with compound interest attached of $180,000 for the next 30 years At an average rate of 6% over 30 years the bottom owes the top $388,509

The Top in this example pay debt servicing costs and expenses and comes out with $50,000 profit and purchases a $50,000 luxury car which the Bottom is going to spend the next 30 years paying off

The Banking system Initial profits, Interest from the top and down payment from the bottom is $40,000 which is just relent out and a monthly income stream from the bottom of $1079 per month for the next 30 years...

Total money (Debt) created out of thin air buy commercial banks at the request of the consumer, first top then bottom, is $180,000 Total owed is $388,509 So then where does the $208,509 come from if it does not exist? A consumer must request a commercial bank to create it out of thin air with compound interest attached for it to exist...

To maintain a functioning economy with a perpetually expanding debt supply in the required amounts to support the servicing of previously created debt then new debt must always be produced in greater amounts than previously created debt or the system implodes... Debt inflation can not slow or stop or the system implodes... The US has been in this debt inflationary ponzi scheme for 45 years and it is approaching the maximum potential where consumers have used the maximum amount of current income as a basis for the creation of the maximum amount of new debt or future income So If the creation of new debt or future income slows then stops then when it becomes current income it will be less...

One of the reasons why 400,000 US workers per week for the last 52 have lost their jobs...the required amount of debt to be created to allow them to have a job ceased to exist... Gold is just one option to store value but in a collapse of a debt inflationary system it to will eventually collapse as it is used a leverage to purchase formerly debt inflated assets at well below fire sale prices...Due to the huge amounts of debt in existence in the global system just 1% of the debt running towards gold would cause it to rise in price in relation to deflating assets by massive magnitudes and could cause the authorities to ban it or confiscate it... The implosion will wipe out the middle class...Maximum potential is where the rich become the richest and the poor become the poorest...the middle class is for the most part wiped out... This is the way economics has functioned for 1000´s of years...

These are the simple steps you can take to survive...Reduce your cost of existence as low as you can...Purchase 365 cans of stew for every mouth you feel responsible for...Have an alternative source of Heat and light is also good... The above is what 100´s of millions of people are not prepared to do and will not do and will be blindsided... At this point your plans should be simplistic you might have to run for your life at some point...

All you are trying to accomplish at this stage is to accept the fact of the coming implosion and preparing enough for it to buy enough time to think...100´s of millions won´t have time to think... If you want to purchase land and construct bunkers with machine gun nests fine...But you want to keep a low profile...Because the top will not tolerate any threat from the bottom (Victims of the scheme)...All rights and due process will cease to exist...You either accept your fate or be eliminated from the equation... Any resistance towards the top in the initial stages will be met with brutal savagery... Did Spartacus win? Forget it...The Absolute capitalists have been constructing a police state for years...and are currently fast tracking the finishing touches...

I´ve been studying the absolute capitalists for 16 years and the mechanics of the Absolute capitalist system itself for 10...it was only in the last 2 years that I became aware of the collapse mechanism...I started my countdown of 16 to 24 months 20 months ago... In less than 4 months I´m done my crusade to warn people...Currently the US needs to get average mortgage rates down below 5% to buy more time...If they don´t the system will begin to collapse with no conventional way to stop it...If they do they might be able to squeeze out 1 more year...

But by 2005 the required amount of debt inflation needed to overpower the 45 years of underlying debt deflationary potential will become Infinite...The current mechanics dictate that to support infinite debt inflation you either have to drop interest rates past zero infinitely which is impossible or pay people to play Hyperinflate...Even if they were to successfully start and maintain a hyperinflationary system it would only be a matter of months until a postage stamp cost a trillion dollars and then you run into the problem of computer processors not having infinite processing power...

I´ve looked at all angles...and there is no way to prevent the collapse...The very second you put your destiny in the hands of a debt backed by debt fractional reserve system Collapse in the only and ultimate outcome...This is a fact whether you think so or not or are aware of it or not... Scare mongering? Then you are scared of the truth...A hapless victim of the Absolute capitalist installed Just think positive religion... Fractional reserve system get weaker the longer they are in operation...until a door slamming shut will collapse them... We have been rocketing towards the door slamming shut for the past 45 years...and it will slam shut at any time between now an late 2005...Then You will have a front row seat to witness a collapse of a global debt backed by debt fractional reserve system... this process has happened 100´s of times before but it has been 100´s of years since one this big has imploded... As Hanz and Franz would say "Hear me now believe me later..." "I won´t believe it until I see it" Great! neither will I...

Absolute capitalists who own everything would consider a system which puts limits on their ability to own and control everything a threat...which they would eliminate if it was tried to be implemented...Until the population can identify the signs of absolute self indulgent reason which is the religion of the Absolute capitalists and reject it there is no way a system based on Responsible altruistic logic can exist...Flawed logic will corrupt responsible capitalists into absolute capitalists... The responsible creation absolute destruction cycle which has been playing out for 6000+ years in the accepted recorded history of civilizations... The Absolute capitalists gained control of the USA 100 years ago and have corrupted at least 5 generations into rejecting Responsible altruistic logic as the way to solve problems encountered during existence and accepting Absolute self indulgent reason...

The tyranny of truth has been turned negative and the tyranny of lies has been turned positive... Using Absolute self indulgent reason causes the individual or group utilizing it to run from the safety of the tyranny of truth towards the comfort of the tyranny of lies... Since the absolute capitalist installed just think positive religion based on absolute self indulgent reason dictates that reality is negative and fantasy is positive... Truth/reality is indestructible and infinite Lies/fantasy is fragile and finite... Fantasy leads to self delusion and ultimately self destruction... The Floating exchange rate debt backed by debt fractional reserve system is a construct totally dependant on absolute self indulgent reason to function...Lies/fantasy must be perpetuated forever for it to function forever... Lies/fantasy are fragile and finite...truth/reality is indestructible and infinite...

Any attempt to employ Responsible Altruistic logic to operate a construct of absolute self indulgent reason will destroy it or cause the operator to be corrupted... Exposure of the truth will cause the system to implode and the implosion of system will expose the truth... All the absolute capitalists are basically trying to accomplish currently is to have a new lie/fantasy constructed and ready when the old lie/fantasy self destructs to maintain power... The actual truth or reality of the basic function of the system has never been this widely understood by so many in all of recorded history...But maybe 1-2000 people on the planet outside of the absolute capitalist top even comprehend it enough have an idea what is going on...The Vast majority of corrupted responsible capitalists are 100% totally clueless and have no real ability to comprehend Evil or effectively fight it... But the grim realities always overwhelm the Absolute capitalists in the end...They always self destruct because they are in contempt of the truth...Due to the construction of the Universe itself contempt of the truth always leads to self destruction or damnation... There is no escape from the tyranny of truth...But Absolute capitalists always try when they employ reason over logic...Fantasy over reality...

At this point I see no miracle which is going to break the chain in the responsible creation absolute destruction cycle we have been trapped in for 6000+ years especially if we are going to employ absolute self indulgent reason to find a solution to the problem which exists because of the employment of Absolute self indulgent reason to solve the problem which was caused by the employment of self indulgent reason... The only way to break the chain is to employ Responsible altrustic logic and just submit to the Tyranny of truth which can not be escaped from... If you employ Responsible altrustic logic at a personal level you can escape...All I´m trying to do is pass on forbidden knowledge while there is still time...when the Economy collapses the screen you are looking at will go blank and when and if it comes on again you will recieve newly constructed lies to replace the old self destructed ones to find comfort in... It may take another 6000 years to break the chain and logic dictates that I should try to help break it and the only way that can happen is to inform all that I can with the limited resources I have...Just as the absolute capitalists will use their massive power and control to try and prevent the tyranny of truth from destroying them... Acceptance of the tyranny of truth which is infinite and industructible is the only path to eternal salvation finding comfort in the tyranny of lies leads to eternal damnation... It is quite a paradox...You can never escape salvation and if you try you will only find damnation... Eternal damnation is only as long as you want it to be...You have no choice with salvation...Unless for some odd "reason" you find salvation to be evil and damnation righteous... Only you can save you...If you want to...You have an eternity to accomplish that simple goal... Hell It might take me another 6000 years just to quit smoking or staring at pornography...or any one of numerous self destructive actions which are imposed on me from birth by absolute capitalists... I know how The system works in great detail that is about it...I have no special powers other than what the employment of Responsible altruistic logic to solve problems dictates... Logic is infinitely more powerful than reason which has finite power unfortunately... All I have seen as unexplained effects is that some times what I think I need based on Responsible altruistic logic I get...Thoughts crystalize into reality on a local basis... I have no fear of the truth...why do you if you do?

If my Information is a help to you that is good enough... I try to keep a low profile...My writings happen when they happen...I´ve been at this for almost 6 years and am growing tired of the Absolute capitalist attacks which grow stronger the more refined my articulation of the truth becomes I´ve become more imfamous then famous my rich relatives don´t want to hear any sound from me...And I don´t have all the answers..You can use my information how you see fit...Absolute capitalists can take advantage of the collapse (They are licking their chops) and Responsible capitalists can prepare to aviod being taken advantage of...That is about it...I´m an insignificant part of your life...But thanks for your happiness... Inquiring... If your house is paid off then you should not worry...Depending on how much you have owing could be a problem...if you owe 50% and take a 50% hit to equity then you will be making payments on nothing...Just like rent...In Japan mortgage rates are low the best credit risks have refinanced their property $1,000,000 at 5% for 100 years...Buts if they were to sell they could only get $300,000...

Most people currently buying real estate will be wiped out...They are doomed and have no idea...The current real estate boom in the US has run for 12 years straight the previous biggest one lasted only 5 years the one before that lasted 4 then 3 then there was basicly normal growth... The only way to keep this one going is to keep lowering mortgage rates...Rates have a lower limit, zero or as low as they can go... Bankers need to eat, zero prime rate = zero prime rib... Japan got them down to 5% then ran out of volume... to continue the boom rates crashed in search of volume which they never found to this day and that was 10 years ago...And Japan is the number 2 country in the debt inflationary ponzi scheme and depends on the export lifesupport provided by the US as the Number 1 consumer economy on the planet just to tread water...Once the US goes down for the count they will collapse further than they currently think possible... Ultimately it is up to you to figure out if it is in your best interest to sell your property to someone to get your equity out and rent then wait... You should also be prepared to fire sale your property if you decide you have to run...and take what you can get...

"The standard of living of the average American has to decline...I don´t think you can escape that." - Paul Volcker, former Federal Reserve Chairman, implementor of the "controled Disintegration of the economy" policy in 1979 which we are at the tail end of... It has worked like a charm...But the final gasp or climax will be an unstoppable hyperdeflationary implosion of debt... Like the tale of the frog... If you try to put it into a boiling pot of water it will try at all costs to resist and keep jumping out... the Controled Disintegration of the economy is the Frog in the pot as the water is slowly heated...allowing the frog to drift off to sleep and be cooked... It is up to you...I can´t even believe it, but logic dictates that it will happen and very soon...I´ve been searching for why it can´t happen for 2 years and all I find is logical conclusions why it can and will... All I know is that these collapses are not a pretty sight when they take place...and this one is of very great magnitude compared to what has taken place in the past 2 centuries in the US...It also has the potential to equal the collapse of Rome...I don´t know. We will all see how bad it truely gets...

2 years ago I was clueless also... I´d studied the mechanics of the debt backed by debt fractional reserve system for 8 years but didn´t fully comprehend it until 2 years ago...I started using the Internet to take a closer look at economics as they are confined within the absolute capitalist system...There are powerful tools on the Internet but if you use reason to figure out what is going on you will arrive at the same conclusions as everyone else with slight modifications but because reason excludes truth from the equation conclusions will all be based on flawed logic...or absolute self indulgent reason Here is truth and there is no way to refute it... All economic systems operate by the top sucking from the bottom... There are numerous arguments which have been created to explain why or discount it but the truth is rich people get rich by making people poor...The top takes more than it gives... Eventually the top has everything and the bottom has nothing... Basicly the system is the cause and when you open your eyes in the morning that is the effect...

Here´s more truth that there is no way to refute... The poor pay the taxes... Now the rich would have you believe they pay the most taxes but if the top sucks from the bottom where does the money come from to pay taxes in the first place? Taxes imposed on the top only cause the top to take even more from the bottom to make up the difference... Now you would be saying to yourself then should we then just tax the poor? The answer is that we need a system based on Responsible altruistic logic...which they tried to do with the USA but there were flaws and loopholes in the Constitution which the absolute capitalists "capitalized" on, Although it took them 100 years to accomplish they succeded... Any attempt to impose responsible altruistic logic on the current system will cause it to implode...But because the system is a construct of absolute self indulgent reason it is doomed to self destruction because it is based on the perpetuation of lies and fantasy...The creation of wealth out of thin air...You can create what is understood as money out of thin air but you can´t create energy or food out of thin air... The current system is based on flawed logic such as the just think positive inflation forever religion... To just think positive employing self indulgent reason to determine what positive is dictates that truth is negative...In such a system truth is eliminated from the equation...It is to be avoided So to answer your question as to why people have been saying the system was going to implode but hasn´t yet is because they employ self indulgent reason to arrive at their conclusions...or just think positive which eliminates truth or logic from the equation... But as we get closer and closer to the inevitable implosion the grim realities become more and more apparent until the truth becomes blindingly self evident...

Remember the system is the cause and when you open your eyes in the morning that is the effect... Did the Great Depression cause the system or did the system cause the Great Depression? The absolute capitalists will provide a blizzard of scapegoats to cover their tracks... Logic dictates that some sort of massive event is planned or will be staged or a recuring event that is hidden knowledge will be capitalized on...One of the reasons I found this place... I know how absolute capitalists think but I have no idea what they have planned as cover to explain how a system that 99.999999% of the population believes can not ever collapse... does...violently Coming out and saying oops we made a horrible mistake is not an option to people who believe you can do whatever you want as long as you don´t get caught... The fractional reserve banking system is the key to their power and control...they will vaporize cities if they have to to protect their secret...

In 12 years of primary education you never hear the term fractional reserve banking...that is no accident...if the general population were to actually comprehend it they would reject it or want it abolished...That can never be allowed... Even University and College economics is based on flawed logic...

“The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it.” Money: Whence it came, where it went - 1975, p15 - John Kenneth Galbraith

"Banking was conceived in iniquity, and was born in sin. The Bankers own the Earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen, they will create enough deposits, to buy it back again. However, take it away from them, and the great fortunes like mine will disappear, and they ought to disappear, for this would be a happier and better world to live in. But if you wish to remain slaves of Bankers, and pay the cost of your own slavery, let them continue to create deposits." - Sir Josiah Stamp, (President of the Bank of England in the 1920´s, the second richest man in Britain)

I said 16-24 months 20 months ago, lost track and it is actually 7 months, but in 4 months I´m done...I have to pack it in...I barely stand looking at the markets and economy any more...The timing is not that important to me really... If they can get mortgage rates to new lows, an average rate of 4 to 4.5% then another round of refinacings can happen which will buy more time and should negate my 4 months timetable. The theoretical maximum potential of the system will be reached by the end of this year...after that the debt inflationary potential needed to overpower debt deflationary forces will become infinite...or without limit...The system as it is currently constructed is not designed to produce infinite debt inflation...No system is or can survive long in hyperinflationary mode... But since we can only see what is presented to us there is no way to know exactaly the day there is just a window of now to late 2005... I´ll stick with my 4 months which is April and If nothing happens, good, my creditability is destroyed and I can escape... I want to now...I´ll try to keep updating info as I get it for 4 more months... It can blow at any time...it is very fragile..

Following the money trail from the FEDERAL RESERVE leads to the Bank of England...a study was done By the US Government in the 70´s and it was found that the FEDERAL RESERVE bank of New York which is the Main central bank which controls the rest of the districts in the US is controled or subservient to the Bank of England...Alan Greenspan was knighted by the Queen...US and UK together in Iraq...The Bank of Japan is part of the bloc also and the central banks in the Commonwealth Australia and India with the US on top...Combined they total 55% of world GDP... Germany is the only country in the EU with significant enough trade with the US to be affected by problems from the US... All I know is France, Germany, and Russia have large Gold reserves... I don´t really pay too close attention to the EU or Europe since I live here...and detailed info is hard to come by..."

Thursday, May 17, 2007

Truth is infinite and indestructible power...Doom and gloom?What is doom and gloom?Who invented that phrase?Who programed you all to use it as an excuse?A reason to reject Truth.Who invented that lie that you have fallen in love with and now cherish?In your mind doom and Gloom = TruthWell then if you are running from Truth where do you run to?Lies and delusions but you don't call them Lies and delusions...You call Lies hopes and delusions dreams...You hope and dream Truth can be defeated...GOD is Truth and Truth is GOD...You hope and dream GOD can be defeated...There is never a lasting victory over Lies (Evil) and the war against Truth (GOD) has no exit strategy and always ends in defeat...Why do you call Lies and delusions hopes and dreams?GOD can not be reasoned with (lied to)GOD can not lieGOD is unreasonableTruth can not be reasoned with (lied to)Truth can not lieTruth is unreasonableLAW can not be reasoned with (lied to)LAW can not lieLAW is unreasonableThe Just think reasonable ignore the unreasonable equation is at the core of the drone reasoning algorithm...That which is reasonable is positive and that which is unreasonable is negative...Or the Just think positive ignore the negative religion...The One World religion...Lies and delusions are negative...and when input into the Just think reasonable/positive ignore the unreasonable/negative equation...That which is unreasonable/negative is ignored by default...It is rejected totally or that which is unreasonable/negative is substituted with that which is reasonable/positive...Lies become hopes and delusions become dreams...You hope and dream GOD can be defeated...I show you that GOD can't be defeated.It's impossible.There is nothing I or you all can do about that...

Altruistic Self indulgent Reason is used to discount logic Lies depend on truth for existence Infinity has no beginning and no end...at what point in infinity are we at now? Everything is based on logic and there is no escape from it since it is infinite...it has no beginning and no end...Those who worship reason self delude themselves into thinking it is possible to escape the infinite and indestructible tyranny of truth The war against the tyranny of truth can never be won...Unless you think you can destroy what can not be destroyed... I have no special powers to save anyone you have free will and it is up to you...

From a post above...we have fallen into the grasping at straws stage... "one way that the system can avoid implosion is by deliberately releasing inflation into the system. Inflation has the effect of robbing deposit holders and giving this money to debt holders. This has the effect of reducing the debt imbalance in the system by reducing debt as a proportion of income. This has happened on a couple of occasions in 1974 and in the UK in the early 90´s. There is some dislocation, but no implosion, the pressure of debt is released. Inflation is brought back under control - usually at the cost of unemployment - and the next phase of new debt creation kicks in.)

Now we are one again running from the tyranny of truth and into the loving and comforting embrace of the Tyranny of lies...self delusion... The above "cure" has been in operation in the US since about 1958... Talk of printing press salvation fairy tales is just more propaganda...Oh my God we are going to implode...no we are not because we have a printing press... I´ve already gone through these debates for the past 2 years...If I sound like an Asshole it is because I spend hours every day burning off brain cells thinking of how a collapse can not happen... More eye bleeding reading which you will soon forget but it is something to do I guess if you feel up to it...

The psychology bubble is the biggest bubble…A key indicator of the health of the economy is the DOW and NASDAQ…Not to you and me but to Joe Q public… If the logic of the second half recovery is to be maintained then at the very least the previous lows can not be broken…ever again… as far as quick fixes go that is possible but long term under current conditions that will be impossible…

But Hyper…Hyperinflation will ignite with low interest rates… The only way to ignite and maintain hyperinflation is by printing cash and distributing it in massive quantities…That is not how this system currently works… The floating exchange rate debt backed by debt fractional reserve system has a maximum potential to inflate debt… The previous system…the Bretton Woods Gold backed fractional reserve system also had a maximum potential…Gold was pegged at $35 an ounce so under the previous system as long as the FED had an ounce of gold for every $35 redeemed by whomever decided that they wanted to convert dollars into Gold then debt could keep expanding…

In the early 60’s the system began to collapse and the US government/Federal reserve closed the gold window in 1971 when they ran out of gold to back the debt inflation… The new system, The floating exchange rate debt backed by debt fractional reserve system allowed further expansion of the debt supply by replacing the gold backing of the dollar with the dollar backing of the dollar…Debt backed by debt…

Now on to the maximum potential of the new system… Since previously created debt is used as a basis for the creation of new debt the following are true logical statements whether you think so or not or can comprehend them or not…

Debt is money…when you borrow money from a financial institution it is created out of thin air with compound interest attached…Currently the reserve requirement for US banks is 3% which means for every $100 a bank has on deposit they can create out of thin air with compound interest attached $3,400 to lend out…The Commercial banks can borrow liquidity from the FEDERAL RESERVE to expand their fractional reserve, so basically the Banks have an unlimited amount of money which is debt created out of thin air with compound interest attached to lend out…

The FED’s estimate of currency in circulation is $700 Billion which is the true fractional reserve and the total debt supply in circulation is $33-$34 Trillion 3% of the money supply of the US is actual currency and 97% is debt created out of thin air with compound interest attached…The evidence for how fractional reserve banking works is right in front of your eyes if you know what to look for… Current consumer income is composed mostly of previously created debt and future income is composed mostly of new debt creation… Fractional reserve debt inflation is sustained by creating more new debt than previously created debt… on paper to maintain debt inflation new debt created out of thin air with compound interest attached must at least be equal to the previously created debt created out of thin air with compound interest attached…

But people are the consumers of debt so ultimately there is no way to perfectly run or distribute debt you poke prod and entice consumers to consume and at the end of the day you hope it is enough to maintain debt inflation… In business operating expenses are composed mostly of previously created debt and profits are composed mostly of newly created debt…

Just in case it was over your head, Debt is created out of thin air with compound interest attached and makes up 97% of the money supply Cash makes up 3% of the money supply and it’s purchasing power is destroyed by debt inflation…If you save “cash” dollars in a shoebox under your bed in a debt inflationary environment they become worth less over time… The 3% is just debt also there is nothing backing it except the figment of people´s imaginations Two factors which cause self sustaining debt inflation…

1. The only way to truly pay or service compound interest which is not created out of thin air but attached to created out of thin air debt is by creating enough new debt out of thin air with compound interest attached to pay or service the compound interest attached on the previously created out of thin air debt with compound interest attached…

2. Debt = money and if it is inflating then the debt/money supply is inflating which leads to price inflation (Deflation of purchasing power) which means that in order to afford to consume a product or service you must continually increase the amount of debt created to account for the rise in price which leads to even greater debt creation the next time and so on…

But is there a maximum potential for debt inflation in a debt backed by debt system… Yes Since current debt consumer income is previously created debt and is used as the basis for new debt creation which is future income then on paper once the maximum amount of current income is used to service the payment on the creation of future income no further future income can be created or future income creation becomes less than current income… Present income is what future income becomes once it flows through the system and if the ability to create more future income is reached then present income which is the basis for future income creation has to shrink or cease to exist altogether…

The simplest sign that debt inflation is self sustaining is employment is rising or sustained and prices across the spectrum are rising…the simplest sign that debt inflation is not self sustaining is rising or sustained unemployment and prices of wants such as computers and autos are either not rising or dropping and commodities such as food, energy, and some metals are rising…

Is debt inflation presently working? The answer is yes…

Is debt inflation presently self sustaining? The answer is no…

What are interest rates? Interest rates are profit derived from money or debt lent out whether it is actual cash or debt created out of thin air… There really is not a problem with lending/renting out cash…But when you charge rent on something created out of thin air you are in fact manufacturing a product for consumer consumption…

The number 1 product manufactured in the USA for consumer consumption is debt and it’s main selling feature or sales gimmick is “It makes your dreams come true” better yet it is the key product which is needed to make “the American dream” a reality… Since debt is a product interest rates are the cost of purchasing that product…the debt itself is your future income but the interest attached is the profit derived from it’s creation… the creation of the debt itself is wholesale the attachment of interest and the signing of the contract agreeing to pay it back plus the attached interest in a certain time span by the consumer is the retail operation… When a consumer uses their current income to borrow future income they are in fact creating their future income into existence…

Since interest rates are the profit of the created out of thin air product called debt which is the key component in the realization of the American dream by the banks then the cost of the American dream to the consumer is interest rates… Banks are just accountants who have the ability to lend or create the future income of the consumer who will then use that future income to service the rent/interest charge on their idea of what the American dream is currently...for profit… In order for banks to maintain a profit then the product called debt must keep inflating or volume must keep increasing… In order to maintain product volume the cost of the product must also keep dropping… In order for the debt inflation experienced for the past 23 years to be sustained the volume of debt must be maintained and that was done for the past 23 years by the systematic lowering of interest rates and easing restrictions on debt creation whenever volume appeared to be on the verge of dropping or was dropping…

But Banks and financial institutions are not non profit organizations the cost of production can not be more than the profit so front line interest rates such as prime can only drop so low…once rates are as low as they can go and volume begins to dry up then the banks are forced to maintain profits by raising interest rates…on less volume But that would cause a further drop in demand…and rates would have to be raised further… Rates can not drop below zero and most rates can not go to zero and rising rates cause volume to dry up… So the mechanics of debt inflation for the past 23 years of systematically lowering interest rates to maintain and expand debt volume to sustain profitability for the banks and maintain self sustaining debt inflation which is the primary fuel of economic growth is almost at an end… and will become apparent in a very short period of time…

If you can not lower interest rates or the price of a product to produce profit then you have to raise the price to maintain profits on lower volume… But the product which currently exists is used as collateral for the creation of more product and if the volume drops then future volume will have to drop… It is called a “recession” when the volume of debt creation slows to the point that debt inflation is not self sustaining and if the problem of declining volume is not solved then it is only a matter of time before the point of no return is reached where the debt deflationary forces are to great to overcome…

For the past 23 years interest rates have been systematically lowered to produce the required amount of self sustaining debt inflation needed to keep the banks solvent and the economy growing…Basically lower low and lower highs… But 0 interest rates or as low as interest rates can go to produce a profit is the bottom line…If you produce a product and the profit eventually is reduced to zero to maintain volume and volume continues to dry up then the jig is up because if it costs more to produce a product than the return or profit from that product then the company will soon run out of resources to produce it… Debt is a special product that consumers can not do without, since debt is money and the demand for money is without end, so if profit can not be maintained by volume then the price or interest rate has to rise…

The Facts of a debt backed by debt system

Debt makes up 97% of the money supply. Debt is created out of thin air by the banks with compound interest attached Previously created out of thin air debt by the banks with compound interest attached is used as collateral for the creation of new debt created out of thin air with compound interest attached by the banks…

The only way to sustain debt inflation is with greater debt inflation. The only way to increase debt inflation is by increasing volume and the only way to increase volume is by lowering the cost or interest rate to allow/create the conditions needed for more debt consumption. Then using the fulfillment of the American dream as a marketing tool to entice the maximum amount of consumers to request the banks create enough debt to satisfy the consumer demand…

Once the maximum amount of previously created debt is devoted to servicing the cost to maintain the creation of new debt then the maximum potential of debt inflation is reached and if the cost or interest rates can not be lowered to a point that allows the production of the required amount of debt inflation to cause a self sustaining chain reaction then there is no “current” way to maintain debt inflation…Debt inflation will falter and transform into unstoppable debt deflation…

Now a deeper look into the psychological bubble or the just think positive infinite inflation religion. Basic marketing is used to convince the maximum amount of consumers that a given action is wrong and if you do it you are a loser but if you instead take our advice you will be doing what is right and will surely be hailed as a winner by your friends and family… The weakest and simplest in society become the leaders of the pack and peer pressure soon causes even the mighty to fall for fear of being left out or left behind.

The “current” purpose of marketing is to convince people that think they are on the right path to begin following the wrong path… currently non stop mindless consumption is what is being marketed and the only way that can be accomplished is by massive consumer consumption of debt… Second hand cars are for losers and lower forms of life… renters or previously constructed home owners are losers and lower forms of life… Only by buying the newest and biggest home can you even think of considering yourself a part of legitimate society… Clothes without holes but out of date are not fit for an animal to lay on let alone for a member of society to wander around in public dressed in… A 27 inch TV for family viewing is for welfare bums… A computer under 2 Ghz is a total disgrace… And so on and so forth… The very act of saving has been reduced or transformed into consumption at a lower price then last week or raising the price by 10% and then saying it is for sale and seeing how many suckers can be fooled into thinking they are actually saving money...

For the marketing to be effective you need massive debt consumption or debt inflation and the just think positive infinite inflation religion to dispel any fear that it will ever come to an end… If debt inflation ends then it is only a matter of time until the just think positive infinite inflation religion collapses… and if the just think positive infinite inflation religion collapses it is only a matter of time before debt inflation ends… Or the thought of the good old days ending will end the good old days and if the good old days end the thought of the good old days will end…

The psychological bubble must be maintained at all costs or it doesn’t matter what monetary actions are taken to produce self sustaining debt inflation because the blind faith needed to reach inflationary goals will just not exist…

The truth is that the current system is almost finished and any consumer that signs on the dotted line to agree to service long term debt which is dependant on debt inflation will default and/wiped out…If the psychological bubble based on the just think positive infinite inflation religion were to pop consumers would stop signing on the dotted line and create a self fulfilling prophecy…

All the talk of unconventional measures and printing press tricks are just that…TALK to add strength or legitimacy to blind faith in the just think positive infinite inflation religion. If the FED were to actually inform the public that the jig was up and that the floating exchange rate debt backed by debt fractional reserve system was in it’s terminal phase The jig would be up… If an asteroid big enough to wipe out civilization was discovered too late do you think they would come on TV and announce that the world as we know it was going to end next month? Don’t be so stupid. But we can see the end of the system so what has to be done? Well not a crash program to mount a 1 Gigaton bomb onto a rocket that is for sure… The only way to stop the debt deflationary asteroid from impacting the financial system and economy is to hit it with a greater force of debt inflation… and for the past 23 years interest rates have been systematically cut on average of 83 basis points a year to provide the blast of liquidity or debt inflation to keep debt deflation at bay…

So in order to continue much farther financially and economically the United States of America must keep dropping interest rates on average around 83 basis points a year…

But here’s the problem…to drop interest rates past zero is impossible, any economist that has not recently suffered a shotgun lobotomy knows that it is impossible to maintain debt inflation or keep banks solvent with negative interest rates…There has never been a bank in the recorded history of banking which advertised negative rates…Banks are in the biz to make profit and 0 or negative rates = 0 or negative profits… So the problem is “how do we drop rates past zero to support debt inflation” and the answer is “You can’t…it’s impossible” Not quite… There is a final system that could be used to solve that problem… In a debt backed by debt system the only times that a printing press has to be used to print a dollar is…

1. When a previously printed dollar becomes warn out or

2. If consumers demand/request more paper dollars than currently exists in a bank’s vault…

That’s it kids the Fed is not printing dollars…It is a debt backed by debt system and the fed has an almost unlimited potential as the bankers bank or lender of last resort to create debt and lend it to commercial banks who in turn fractionally reserve it 34 to 1 and find enough consumers willing to sign on the dotted line to consume the newly created $34…

Talk of dollars coming home to roost is BS the dollars of debt created begin roosting the second they are created out of thin air...There are not house sized bails of money collecting dust in foreign Cantral bank vaults... The FED pumps debt into the system…asset and to a certain degree commodity price inflation is a result of debt inflation created by the FED and commercial banks at the request of the consumers for their consumption to live or at least service the cost of the inflationary American dream… The FED is not printing money… sorry…

”The Bernanke Printing press address” was aimed at a specific group of cowering simpletons who needed to be assured that the debt inflation that they are addicted to was never going to end to prevent them from shitting their pants and the thought of a printing press printing forever put their fears to rest… The printing press trick has existed since paper and ink were combined to produce cash… It is nothing new just the regulation method has changed from a specified amount of gold backing debt to a debt backing of debt…

Both systems stop producing debt inflation if consumer demand for debt is not greater than the previously created debt but the gold backed system was limited by the supply of gold so the system had 2 maximum potentials either the US ran out of gold or it would run out of consumers able to sign on the dotted line in great enough numbers… when the US went off the gold standard in 71 it eliminated a roadblock or a potential limit to maximum debt inflation to allow debt to continue being inflated past the point where it ran out of gold…

There is an invention called the printing press alright and has existed since any of us were born it is nothing new and in fact the “Hyperinflationary system” which I alluded to before has been tried before…with predictable results…

Prices were rising by the Hour when they shut the presses off and in the debt deflationary implosion that followed mass starvation and brutal repression followed... Salvation did not last long... And in Germany the people who owed the Debt (the Government) also controlled the printing press...In the US the people that owe the debt do not control the printing press...so unless the counterfeiting laws are repealed and consumers are allowed to ink jet their debt away there is no effective hyperinflationary distribution method existing in the US.

In a gold backed system maximum debt inflation is pegged to the convertibility of debt for gold and also the ability for consumers to service greater amounts of new debt using previous debt creation as collateral…

In a debt backed system maximum debt inflation is pegged solely to the ability for consumers to service greater amounts of new debt using previous debt creation as collateral…

In a Hyperinflationary system maximum debt inflation is pegged to the printing press and an "effective distribution method" plus the computational abilities of the society…

All fractional reserve banking is inflationary or to be accurate “Inflate debt at all costs or die”

When the inflate debt at all costs or die basic mechanics reached the gold limit then the debt backing debt limit was introduced…when that limit is reached then a hyperdeflationary implosion will result or you can/could base debt inflation on the printing and "effective distribution" of non debt backed currency to buy more time…

Ultimately that is the purpose of maintaining debt inflation… to buy more time, more time for what? Who knows except the culprits… How much time can a hyperinflationary system buy? On paper as long as the printing presses can keep printing or to be more accurate…as long as greater and greater amounts of non backed by debt “money” can be effectively distributed quicker and quicker for free to sustain debt inflation which leads to price inflation there is no real limit…except the human being consumer themselves…at the start of hyperinflation it is slow but the exponential nature of attaching the inflate debt at all costs or die debt backed by debt system to a non debt backed source as it’s limit for the maximum potential you then have effectively removed the limits to price inflation or interest rates…except the ability for human being consumers to compute or account for it… eventually the system hyperinflates to the point that it takes longer to figure out how much something costs then the price is rising…

How long does this process take? Not very long… maybe a few months until the most powerful supercomputers on the planet can´t keep up The bad aspect of instituting a hyperinflationary system is that the paper trail leads directly back to the culprits so it is not the perfect crime…Only if someone has a death wish do they actually chose to back a hyperinflationary system…

When the current system collapses the culprits will stay hidden because the cause of debt inflation is consumer consumption of debt and you will never be able to prove in a court of law that the FED or the Government or the Commercial banks forced consumers to consume debt…

When the current system collapses the losers will get the blame… they always do… when you are bankrupted you are a loser and the winners don’t care if your excuse is because the maximum potential for debt inflation was reached so there is not enough new debt being created to allow my job to exist anymore…They will just laugh as they violently shake you by the ankles over a wheelbarrow.

If you think debt inflation can last forever then you had better be prepared to lose that bet… Talk of printing presses and a rerun of the 1970’s inflation are the grasping at straws of desperate people in denial of the fact that blind faith in the just think positive inflation forever religion will not provide the justification for your actions or salvation from them…

The Debt inflationary messiah of the just think positive cult will be revealed to be a False profit... You want to run with the herd? Then you risk running off the cliff to be harvested to sustain those higher in the economic food chain… Those who are owed debt are the shakers and those who owe are the shakees.

In order to service debt, New debt inflation must be greater than or equal to previous debt inflation if it should stop or slow for any reason due to either the inability for consumers to borrow more or the refusal for consumers to borrow more…Debt will deflate and be unstoppable… You can either play your part by leveraging yourself to the hilt or reducing and eliminating your debt consumption…the inability for interest rates to be lowered forever to produce unlimited debt inflation will be reached one way or the other and when that day arrives debt deflation will be totally unstoppable and the $34 trillion debt supply will begin to vaporize at a rapid rate…

If this is too scary to deal with…then just walk to the nearest T.V., turn it on and you will soon forget about such horrible concepts and be mesmerized to contented docile sleep yet again…and again and again forever and ever AMEN.

Stages of a debt backed by debt fractional reserve system...

1. Inflation of debt and the destruction of savings... This process started between 1958 to 61 and will end sometime in 2004 to 2005

2. Deflation of debt and the destruction of equity Sometime in 2004 to 2005 this will start and be unstoppable leading to a hyperdeflationary implosion of debt...

3. Bankruptcy of the banks, collapse of the economy, and consolidation of power 2006 is where the Great Depression II will reign supreme...

Tuesday, May 01, 2007

"It would be nice for a replay but it's not going to happen. Because you require massive debt/money supply inflation...In 1970 the Total debt/money supply was 1.5 Trillion dollars and Gold $35 an ounce as set by the Government of the USA according to the powers the US government has in the Constitution to regulate value. It's currently $42.2222 an ounce. Between 1971-1973 The 1944-1973 Bretton Woods rules of the Global system of fixed exchange rates could no longer be sustained and the rules were changed to the floating exchange rates.

"Record High Gold Price in US Dollars The previous all-time record high gold price in US dollars was reached on 21st January 1980, fixing at $850.00 on that day's p.m. fix."

"Highest Ever Gold Price in Pounds Sterling On Wednesday 10th May 2006, gold reached its record highest price ever in pounds sterling, the morning London Gold Fix was £378.249, beating the previous peak of £371.066 on 21st January 1980, although in US dollars it is still 15% below its $850 peak."

By 1980 the Total debt/money supply was 4.4 Trillion dollars and GOLD was 850 dollars an ounce.

Inflation of the US debt/money supply from 1970 to 1980 was just under 200% The inflation in the price of Gold by speculators was about 2300% The total public debt or Federal Government debt was 368 Billion dollars in 1970 and by 1980 was 845 Billion dollars. An inflation of 129% size of the Treasury market.

The FED does not set rates...The Bond markets set rates. So from about 1954 where yields on the 10 year were 2.29% to 1981 where Yields hit 15.32% on the 10 year Treassury...Bonds were in a bear market. Yields in 1970 were 7.79% so from 1970 to 1981 yields basically doubled. Meaning the supply of bonds was greater or increasing faster than demand for them. Gold was in demand more than bonds obviously. Then what happened? The top who does all the buying and selling switched from selling Gold to shorting Gold to all the speculators and began buying bonds and equities. Causing Yields on bonds to drop while the price of them was bid up and the price of equities in the stock markets to begin shooting up. While the speculators unable to sustain the rise in price of Gold any longer also began selling gold causing the price of gold to implode.Face the facts...

Once you remove all the babble to justify the bets you all are placing you all are speculators...All in search of yield. The top do all the buying and selling in the markets and the speculators follow along. When the top is buying or covering their positions the bottom is selling like mad and when the top is selling or shorting their positions the bottom is buying like mad. The top invented and owns all the greater fool games that you all play while foolishly thinking you are investors and that the greater fool games are stock markets in a so called free market system.

[Cheryl-Lynné:

snip -

On May 17, 1792 a group of twenty-four traders gathered under a buttonwood tree at 68 Wall Street in lower Manhattan, NYC to negotiate the conditions and regulations of the speculative market. The result was the Buttonwood Agreement, a simple, two sentence contract.

The New Yorkers dedicated the Tontine Coffee House in Wall Street as their exchange in 1793. In 1817, they formed the New York Stock & Exchange Board with its own constitution and bylaws; its name was changed to the New York Stock Exchange in 1863.

"We the subscribers, brokers for the purchase and sale of public stock do hereby solemnly promise and pledge ourselves to each other, that we will not buy or sell from this day on for any persons whatsoever any kind of public stock at a less rate than one-quarter percent commission on the specie value of, and that we will give preference to each other in our negotiations."

http://www.stockinformation.com/history.htm]

You all have zero idea that the whole system is just one huge milking machine from the bottom to the top and that you all popped into existance within it and have been milked your whole lives...It did not become corrupted...It has been a scam from square one...It's just now that some of you are beginning to wake up from the daydream and catching glimpses of the nightmare that you think it's corrupt.

The SEC? created by the top to fool you all into thinking that there is a guardian protecting you. The SEC protects the owners of it. All the fines it imposes are chicken feed compared to the gains...Just smoke and mirrors to mesmerize the mass of speculators...

In order for a replay of the 1970's to take place you need to invent a Time machine and go back to 1970. Currently the Total debt/money supply is 43 Trillion dollars and GOLD is 624 dollars an ounce. Inflation of the US debt/money supply from 1970 to now is just under 2300% The inflation in the price of Gold by speculators from 1970 to now is about 1600%

The median price of Homes in the USA was $23,000 and now it's $230,000A 900% increase.All due to the 24 year bull market in Bonds...Where the supply of bonds is lower than the demand for them causeing them to be bid up in price and yields down. To sustain this fantasy world you all live in the bull market in bonds has to continue forever past zero which is impossible...Or the 35 year old real estate bubble that is the primary source of new debt/money will pop and the debt/money supply will stop growing and begin shrinking. All the prices of everything that have been inflating for decades will begin collapsing as well.

And no the FED is not, even if they had the ability, going to inflate the money supply to keep the price of gold inflating for the gold bugs so their feelings are not hurt by the snuff out of their hopes and dreams. When the time comes the top along with the rest of their rich bootlicking/worshiping servants will just short everything to oblivion.That's what happens when the rich getting richer poor getting poorer cycle reaches maximum potential."